Santander was the bank that offered the lowest interest rate for mortgage loans in Mexico in 2023. In January that year, the lowest annual interest rate offered by this bank amounted to 9.05 percent. Banorte and Afirme were the two other banks that offered interest rates below 10 percent. What are the mortgage rates in other countries worldwide? Mortgage interest rates vary widely across different countries, with some of the most attractive rates found in Europe. Mortgage rates have generally increased since 2021 because of rising inflation. That can clearly be seen in the development of mortgage rates in the United States, where interest rates more than doubled in just two years. How much does buying a home in Mexico cost? The average price of a home in Mexico was about 1.6 million Mexican pesos in 2023, but in Mexico City, this figure was almost twice higher. Tamaulipas, Tlaxcala, and Durango were among the states where housing was least expensive.

The benchmark interest rate in Mexico was last recorded at 9.50 percent. This dataset provides - Mexico Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Mexico's housing market demonstrates significant regional price variations, with Mexico City emerging as the most expensive area for residential property in 2024. The capital city's average house price of 3.91 million Mexican pesos far exceeds the national average of 1.73 million pesos, highlighting the stark contrast in property values across the country. This disparity reflects broader economic and demographic trends shaping Mexico's real estate landscape. Sustained growth in housing prices The Mexican housing market has experienced substantial growth over the past decade, with home prices more than doubling since 2010. By the third quarter of 2023, the nominal house price index reached 255.54 points, representing a 146 percent increase from the baseline year. Even when adjusted for inflation, the real house price index showed a notable 40 percent growth, underscoring the market's resilience and attractiveness to investors. The mortgage market is dominated by three main player types: Infonavit, Fovissste, and commercial banks including Sofomes. In 2023, Infonavit, a scheme by Mexico's National Housing Fund Institute which provides lending to workers in the formal sector, was responsible for the majority of mortgages granted to individuals. Challenges in mortgage lending Despite the overall growth in housing prices, Mexico's mortgage market has faced challenges in recent years. The number of new mortgage loans granted has declined over the past decade, falling by approximately 200,000 loans between 2008 and 2023. This decrease in lending activity may be attributed to various factors, including economic uncertainties and changing consumer preferences. The state of Mexico, which is home to 13 percent of the country's population, likely plays a significant role in shaping these trends, given its large demographic influence on the national housing market.

In the third quarter of 2023, Mexicans paid on average 1.6 million Mexican pesos to acquire a residential property. Compared to the same period of the previous year, the nominal price increased by nearly 15 percent. Mexico City registered the highest price for this type of property, with an average exceeding three million pesos per residential unit. Housing tenureCompared to renting or borrowing, house ownership is the favored form of housing tenure in Mexico. In 2020, nearly 69 percent of all Mexican households owned their homes, while only 17 percent rented them. Moreover, roughly 87 percent of the owned households in the country were completely paid off, while the remaining households were still in the payment process. Mortgages in MexicoMortgages, or homeownership loans, are debt instruments used by individuals to acquire real estate property, without needing to pay the total cost upfront. Mortgages are universally common and important for Mexico’s residential real estate industry. In 2020, almost 495 thousand mortgage loans were granted in Mexico, which was the lowest amount the country had seen in fifteen years. From the mortgage value granted that year, approximately 50 percent came from private banks.

In 2022, about two thirds of all Mexican homes were owner-occupied. Meanwhile, 15 percent of the total 37 million housing units were rented. In 2023, Mexicans paid on average 1.6 million Mexican pesos to acquire residential property.

Depending on the location, the average price for a two-bedroom apartment in Mexico City could exceed 300,000 U.S. dollars in 2024. In Miguel Hidalgo, the most expensive borough to buy an apartment in Mexico City, the average apartment price was nearly 439,000 U.S. dollars for a two-bedroom apartment, while a three-bedroom apartment cost over 918,000 U.S. dollars. Among the boroughs ranked in the statistic, Coyoacán had the most affordable prices for a one-bedroom apartment, averaging 121,000 U.S. dollars. Overall, Mexico City has the highest average house price per square meter in Mexico.